Xiao J.Alam, Md. MahmudulKhan S.J.M.2026-09-202026-09-202026-04-01Corporate governance and recovery performance: Evidence from chinese manufacturing firms. (2026). Management and Accounting Review, 25(1). https://doi.org/10.24191/MAR.V25i01-12260079752-s2.0-105040971711https://hdl.handle.net/10361/30080This study examined how corporate governance relates to the recovery of Chinese listed manufacturing firms after exiting special treatment (ST). Using a sample of 182 A-share manufacturing firms that recovered between 2009 and 2023 and remained out of ST for at least three consecutive years, the study treated recovery as multidimensional: profitability restoration (ROA, ROE), financial resilience (ZChina score), and market confidence (Tobin's Q). A two-step system GMM dynamic panel model with year effects was used to control for performance persistence and endogeneity. Results showed that overall governance quality (G score) had a significant positive correlation with profitability restoration and financial resilience, indicating that better governance helps stabilise and improve recovery after ST exit. However, market confidence showed a different pattern: G score had a significant negative correlation with Tobin's Q, whereas the share of female directors and political connections had significant positive correlations with Tobin's Q. Overall, recovery is not a single-track process. These findings provide guidance for policymakers, board members, and investors when gauging governance quality and assessing sustainable recovery.191 - 209en-USCorporate governanceFinancial performanceGMMManufacturingSpecial treatmentCorporate governance--China.Manufacturing industries--China--Management.Organizational resilience.Corporate turnarounds--China.Article10.24191/MAR.V25i01-12